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Kenya: Taxes and Costs

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Last Updated: Aug 02, 2006

Kenya's rental income tax is high

Income Tax

Non-residents are taxed only on income derived from sources in Kenya. Rental income earned by non-residents from real properties is subject to a withholding tax at a rate of 30% on the gross rental income received. Personal reliefs are only granted to resident taxpayers.


Property Tax

This is an annual tax levied by the local government depending on the location and value of the property. It is usually about 1% of the property value.

Land tax is a local tax with rates varying depending on the location of the land. The highest rate is 8% which applies in Nairobi.


Capital Gains Tax

No tax is levied on capital gains realized from the sale of real property in Kenya.

 

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